Are smartphones becoming the new wallet?

Except for chip-and-pin technology and contactless payments, the evolution of payments has been pretty slow. But that’s all about to change thanks to the emergence of ‘digital wallets’.

With four in five Australian adults already owning a smartphone, and Australia being one of the biggest users of tap-and-go payments in the world, the adoption of these digital wallets is set to skyrocket.

To help you keep up to date with this new tend, we’ve compiled everything you need to know about these fintech platforms so you can stay in the loop.

what actually is a digital wallet?

A digital wallet is when your phone works like an electronic version of your current wallet, allowing you to make cashless purchases. By linking your bank account to the platform, you can securely turn your smartphone into a debit/credit card, which you then tap at the cash register. Most of us have our smartphone on us AT ALL TIMES, so this means no more fumbling around in your handbag, looking for your wallet.

As well as instore use, these platforms also make online shopping a breeze. Once your card details are in the app, you won’t need to then re-enter them once at the online checkout, simply access your digital wallet through your username and password.

As well as accessing your card information, these platforms can even bring your loyalty cards, coupons and gift cards together. So no more heavy wallets stuffed with cards you’ve forgotten you even had.

turf wars

Some of the most popular (and advanced) digital wallet platforms include; Apple Pay, Google Pay, and Samsung Pay, aka “The Pays”. But how do you know which one is right for you?

Apple Pay – Available on select Apple devices, Apple Pay lives in Apple's Wallet app. To access it, you’ll need an Apple ID that is signed in to the iCloud.

Google Pay – The love child of Android Pay and Google Wallet. Google Pay is available for select Android devices.

Samsung Pay – The first platform in the country that’s available to customers of all the ‘Big Four’ banks in Australia. Samsung Pay is available on select Samsung devices and utilises both NFC & MST technology.

how they actually work?

While each provider and device works slightly differently, the overall concept is the same. Firstly, you need to download the app that is compatible with your device and enter your card details. Just like how you once downloaded your bank’s mobile app in order to use online banking on your device.

In order to actually pay, the platform simply requires you to hold your smartphone near the card reader, just like you would do with tap-and-pay cards. The platform will then authenticate your purchase, be if through a PIN entered, fingerprint or facial recognition.

These platforms use NFC technology (near-field communication) that allows radio frequencies to communicate with each other. While this tech has been available for quite some time, it is only just starting to be built into smartphones, so be sure to check that your device is NFC-enabled.

worried about safety?

By utilising the security features that are already built-in to the hardware and software of your device, these platforms are actually making your transactions more secure than ever. For example, if your smartphone has fingerprint scanning you can pay using your biometric authentication.

Another security bonus of using these platforms is that your card information (such as your 16-digit card details) is actually hidden when making a purchase. Even more than this, your transaction is then authenticated with encryption, making the payment process even more secure.

So, are you now ready to make the switch?

In order to get the most out of your Digital Wallet, it's nice to have the comfort need to have the comfor tof a plan plenty of data for when you’re out and about.

While these apps can certainly help brighten up your daily commute, they rely on data to be used, so ensuring you have reliable connection with data on-tap is essential. so finding a plan that matches up with your browsing habits is super important.

amaysim’s SIM only plans are a great option and give you the freedom to simply pick the data allowance that suits you best. Starting from just $10/28 days, with no lock-in contracts and the option to change your plan each month at no extra cost, it’s an easy choice when it comes to finding the perfect mobile plan to match your usage and budget needs.